Schedule, Estimating & Financial Formulas

All 14 cards in this deck

1. 1.Formula for a PERT (beta distribution) estimateShow answer

   E = (O + 4M + P) ÷ 6, where O = optimistic, M = most likely, P = pessimistic.

2. 2.Formula for a triangular distribution estimateShow answer

   E = (O + M + P) ÷ 3

3. 3.Formula for the standard deviation of a PERT estimateShow answer

   SD = (P − O) ÷ 6

4. 4.What is total float?Show answer

   How long an activity can be delayed without delaying the project finish date. Total float = LS − ES (or LF − EF).

5. 5.What is free float?Show answer

   How long an activity can be delayed without delaying the early start of any successor activity.

6. 6.What is the critical path?Show answer

   The longest path through the schedule network. It determines the shortest possible project duration; activities on it typically have zero total float.

7. 7.What is the difference between fast tracking and crashing?Show answer

   Fast tracking runs activities in parallel that were planned in sequence (adds risk). Crashing adds resources to shorten activities on the critical path (adds cost).

8. 8.Formula for the number of communication channelsShow answer

   Channels = n(n − 1) ÷ 2, where n is the number of people (including the project manager).

9. 9.Formula for Expected Monetary Value (EMV)Show answer

   EMV = probability × impact. Opportunities are positive values, threats are negative; sum them across outcomes in a decision tree.

10. 10.Formula for Present Value (PV) in project selectionShow answer

    PV = FV ÷ (1 + r)ⁿ, where FV = future value, r = interest rate, n = number of periods.

11. 11.How do you use Net Present Value (NPV) to choose between projects?Show answer

    Choose the project with the highest NPV. A positive NPV means the project is expected to add value. Project duration is already accounted for in NPV.

12. 12.How do you interpret a Benefit-Cost Ratio (BCR)?Show answer

    BCR = benefits ÷ costs. Above 1.0 means benefits exceed costs; higher is better.

13. 13.How do you interpret payback period?Show answer

    The time it takes to recover the initial investment. A shorter payback period is generally preferred.

14. 14.What is a lag versus a lead?Show answer

    A lag is a delay added between dependent activities (e.g. wait 2 days for concrete to cure). A lead lets a successor start before its predecessor finishes.

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